Netflix has recently highlighted a shocking finding to the public regarding freeloading of the video streaming service by millions through password sharing.
The company has gone as far as admitting how estimated figures are crossing the 100 million benchmark, and this entails more than 30 million houses across both Canada and the US too.
The insights were shared by Netflix recently as a part of its aim to crack down on the issue as it supposedly gears up to entice its users to pay more.
A letter was recently shared by the company to its team of shareholders along with an insightful report of its results on a quarterly basis. And that is where Netflix highlighted its struggles in combating problems like these amongst the hurdles it faces to get a higher paid user base.
Another major surprise worth discussing is how the platform witnessed a massive and unexpected decline in its user subscriptions with results varying from around 221.8 million to about 221.6 million during the first quarter of 2022.
In the letter, the company delineated how its high penetration in so many households with factors like the competition was causing an obstruction to its revenue growth. In particular, the number of subscriptions relating to the USA and Canada region fell from 75.2 million to 74.5 million in a span of three quarters.
But the company is not giving up. They are on a mission to bring the growth statistics back up by enhanced monetization strategies for sharing between different households.
About one month back, the company had briefly spoken about how it planned to do just that by requesting subscribers to pay about $3 more in a month, in case they wish to allow someone else from the outside to gain access to their account on Netflix. And they claim to be already on it with testing already starting in countries like Peru, Chile, and Costa Rica too.
The letter also highlighted how the company was able to see immense growth over the years because it simply chose to ignore the password sharing and freeloading matter. But now, Netflix means business and they want people to pay more.
The video streaming platform says it has always aimed to provide easy access to all of its members in a household, thanks to features like multiple streaming. And although they’ve been quite popular, it’s time for a change.
But critics wonder how successful Netflix will be in terms of being able to monetize those that get the service for free. And whether the bold decision ends up pushing back those freeloaders to other video streaming platforms as the competition is intense.
Read next: Sharing your streaming service passwords can be pretty disastrous reveals a new report
The company has gone as far as admitting how estimated figures are crossing the 100 million benchmark, and this entails more than 30 million houses across both Canada and the US too.
The insights were shared by Netflix recently as a part of its aim to crack down on the issue as it supposedly gears up to entice its users to pay more.
A letter was recently shared by the company to its team of shareholders along with an insightful report of its results on a quarterly basis. And that is where Netflix highlighted its struggles in combating problems like these amongst the hurdles it faces to get a higher paid user base.
Another major surprise worth discussing is how the platform witnessed a massive and unexpected decline in its user subscriptions with results varying from around 221.8 million to about 221.6 million during the first quarter of 2022.
In the letter, the company delineated how its high penetration in so many households with factors like the competition was causing an obstruction to its revenue growth. In particular, the number of subscriptions relating to the USA and Canada region fell from 75.2 million to 74.5 million in a span of three quarters.
But the company is not giving up. They are on a mission to bring the growth statistics back up by enhanced monetization strategies for sharing between different households.
About one month back, the company had briefly spoken about how it planned to do just that by requesting subscribers to pay about $3 more in a month, in case they wish to allow someone else from the outside to gain access to their account on Netflix. And they claim to be already on it with testing already starting in countries like Peru, Chile, and Costa Rica too.
The letter also highlighted how the company was able to see immense growth over the years because it simply chose to ignore the password sharing and freeloading matter. But now, Netflix means business and they want people to pay more.
The video streaming platform says it has always aimed to provide easy access to all of its members in a household, thanks to features like multiple streaming. And although they’ve been quite popular, it’s time for a change.
But critics wonder how successful Netflix will be in terms of being able to monetize those that get the service for free. And whether the bold decision ends up pushing back those freeloaders to other video streaming platforms as the competition is intense.
Read next: Sharing your streaming service passwords can be pretty disastrous reveals a new report
